OpenAI announced on the 28th of May, that it plans to grow its Irish office, as it seeks to expand its presence in the European Union. There’s no doubt that 2025 is the year of AI. Yet, public discourse about AI trends often skips over a critical element: the infrastructure that powers it, and the profound environmental implications of this technological foundation.
Nvidia, now recognised as the world’s 9th most valuable brand by Brand Finance (thanks to its decisive bet on AI), exemplifies how businesses have driven this revolution. Their innovations—from GPUs to high-performance computing and data storage technologies—form the backbone upon which the visible achievements of artificial intelligence and machine learning rest. These advancements are not merely predicted; they are essential for AI to thrive, permeate and become omnipresent in modern society.
But this progress comes at a significant cost. AI models, including the transformers that power the likes of ChatGPT, consume vast amounts of power. According to Bloomberg, this energy demand has, in some cases, been met by old-school coal plants, undoing progress toward achieving global ESG goals. This environmental toll underscores the urgency of addressing the unintended consequences of our AI-driven future, as evidenced by the climate-related disturbances that continue to escalate worldwide.
The European Union's recently published EU AI Act is the first binding regulation on AI globally to address the negative impacts of AI. One of the most promising aspects of the EU AI Act is its emphasis on AI regulatory sandboxes. These controlled environments could facilitate the development and testing of AI systems while also considering a specific focus on protection of biodiversity, environmental protection and climate change mitigation. This ractice encourage innovation and can help policy makers identify best practices for the development of energy-efficient AI solutions.
Interdisciplinary cooperation, another cornerstone of the EU AI Act, is crucial for addressing the complex challenges posed by AI. By bringing together AI developers, environmental experts, and social scientists, the act recognizes the interconnectedness of technological advancement, environmental sustainability, and societal well-being. The EU AI Act gains further significance when seen in the context that the EU is currently reviewing eco-design minimum efficiency requirements for servers and computers. Additionally, they are finalizing rules to monitor the energy performance of data centers, including their energy and water footprint. This broader legislative landscape demonstrates the EU’s commitment to tackling energy consumption across the entire digital ecosystem.
At the same time, AI is being leveraged to tackle critical global challenges, including climate change, energy efficiency, and ecosystem resilience. These efforts are part of a broader push to ensure that AI advancements contribute to a more sustainable and resilient future. This dual narrative of innovation and responsibility is crucial as we navigate the complexities of an AI-driven world.
Addressing the environmental impacts of AI is not just an option but a necessity for sustainable progress and essential for shaping a future where technological progress (including its infrastructure and energy needs) and environmental stewardship go hand in hand.
"Whilst the use of AI can in fact reduce the level of processes and indeed resources in key tasks, the carbon cost cannot be underestimated, or indeed the replacement costs. Studies have indicated that AI systems could emit the same level of carbon as 22 million people. Nevertheless, the technology can benefit society - however the cost / benefit needs to be properly quantified."
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